- Barclay's Bob Diamond: A Demonstration Of The Peter Principle
The government is a fine example of a large organization that screws up the lives of many people. Even though the government is something that should be viewed with suspicion there are many other fine examples of times when someone representing an organization did not always have the best interests at heart.
Although Barney Frank and Chris Dodd passed the legislation that led to the housing bubble burst in 2008, they could not have done so if the banks were not handing out mortgages to people who could not afford them. The founders of Lehman Brothers never thought the federal government would let them collapse.
Millions of UK residents find themselves in a similar situation because of the actions of Barclays, an investment bank within that country. Many fingers of blame point directly to one man. Bob Diamond, the head of the firm, is where many of the fingers point.
He has gone before parliament t to answer for his actions, although there is little much he can do. The investors who have lost money are not likely to get the money back anytime soon. The problem does not occur because the individual has been immortal. It is mostly because he has been incompetent.
The Peter Principle shows itself at work here. The Peter Principle, for those who have forgotten, states that every employee rises to the level of his own incompetence. People who make it to the highest ranks of an organization may or may not be capable of their job. If they are incredibly unsuited to the job they h old, the consequences can be dire. Bob Diamond fell pretty to this trap. He never should have had his position, but he got it anyway. Because he got a position he was not well-suited for, many people who used the organization will suffer. At least Barclays Bob Diamond had the good grace he has resigned.
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from a post at thepete.com
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